US brand Tupperware has filed for bankruptcy as it battles declining sales and financial difficulties.
The 78-year-old food storage container company, renowned for its iconic products, is seeking court approval to sell the business while aiming to keep its operations running.
Despite efforts in recent years to refresh its product line and appeal to younger consumers, Tupperware has struggled to stand out from competitors.
Last year, the company warned it might face collapse unless it could secure new funding.
Following reports of its bankruptcy plans, Tupperware’s shares have dropped by over 50% this week.
Tupperware experienced a brief sales surge during the pandemic, as more people cooked at home, but demand has since dwindled.
The firm has also been hit by rising raw material costs, higher wages, and increased transportation expenses, which have further eroded profit margins.
Laurie Ann Goldman, Tupperware’s CEO, noted that “the company’s financial position has been severely impacted by the challenging macroeconomic environment” over the past several years.
Founded in 1946 by Earl Tupper, the company initially struggled until pioneering saleswoman Brownie Wise introduced the concept of “Tupperware parties”—home-based sales events that transformed the brand into a household name.
Today, Tupperware is sold in 70 countries worldwide.
However, as Susannah Streeter of Hargreaves Lansdown pointed out, “the party has been over for some time.”
Changes in consumer behavior, including a shift away from plastic products in favor of more eco-friendly options, have contributed to Tupperware’s decline.
Financial reporting issues in 2021 and 2022 also damaged the company’s reputation.
Source-BBC
